MANHASSET, N.Y. Cirrus Logic Inc. said Wednesday (Aug. 25) is it reducing its work force by 7 percent and will incur a $1.5 million restructuring charge in its second fiscal 2005 quarter ending in September.
The cutbacks will affect about 55 employees located mainly at the company's Texas and California facilities, according to a company spokesman. The restructuring charge, primarily for severance and facility consolidation, will be paid throughout the remainder of 2004.
Cirrus (Austin, Texas), a fabless semiconductor supplier to the consumer, automotive entertainment and industrial markets, said it is experiencing weak demand for audio converters used in DVD players and recorders. The company expects the layoffs to save $2 million to $3 million per quarter.
The company added that it now expects second fiscal 2005 quarter revenue at the low end of the $61 million to $68 million range it projected in July.
"The actions announced today reflect our ongoing commitment to improve our financial performance," David French, Cirrus Logic Inc.'s president and chief executive, said in a statement. "We plan to continue fine-tuning R&D investments with emphasis on diversification and growth of our core analog product line, and selective investments targeted at the emerging, near-term growth opportunities in DVD recording."